(Calculating project cash flows and NPV) Raymobile Motors is conaidering the purchase of a now production machino for $350.000. The purchase of this machine will resul in an increaso in earnings belore interest and taxes of $140,000 per year. To operate this machino property, workers would have to go through a beiof training session that would oost $20,000 after tiax. in addition, it would cost $4,500 after tax to install this machine correctly. Aso, because this machine is oxtremely efficient, ts purchase would nocossitate an increase in inventary of 520,000 . This machine has an expected life of 10 years, ater which it wil have no salvago value. Assume simplified atraight-Aine depreciation, that this machine is being depreciated down to zero, a 33 percent marginal tax rate, and a required rale of return of 9 percent. a. What is the intial outiay assoclated with this project? b. What are the annual ohor-tax cash flows associated weh this project for yean 1 through 9 ? c. What is the terminal cash flow in year 10 (that is, the annual aflectax cash flow in year 10 plus any additional cash flews associated with tormination of the projoct?? d. Should this machine be purchated? a. The intial cast outloy associabed wah this project is $ (Round to the nearest dollar) b. The anraal afiectax cash flows assoclated with this project for years 1 through 9 are 5 (Round to the neareat dotar) c. The ferminal cash fiow in year 10 (that is, the annual aflectax cash fow in year 10 plus anry additional cash fow associated wth torminabion of the propect) is 3 d. Civen the information, the machine (Feloct then best cheice below.) A. should be purchased because the NPV is $456,260, making ll a worthwhile investhent for the compary B. chould not be purchated because the NPV is 5466,266, making it an unacceptable investment tor the company